Productivity Indicators and Challenges in New Zealand Workplaces

Abstract

As part of a government initiative, the Department of Labour’s Workplace Productivity Working Group has been charged with the task of stimulating debate and broadening the discourse on workplace productivity. The Department of Labour has also supported research into how New Zealand businesses are responding to the productivity challenges they face. The paper presents findings from two studies that were part of this research agenda. In particular, the paper reports on the experiences of individual business case studies, (predominantly SMEs), of introducing and maintaining initiatives designed to raise workforce productivity. Analysis of the data reveals a number of key themes: catalysts and drivers for change; distinctive characteristics of high performing firms; differing characteristics of the case studies; and barriers to introducing productivity initiatives and some solutions. The findings also indicated that in practice, efficiency increased both though innovation and a realignment of activities, with higher value added than those conducted in the past. However, there is an inherent tension with these and other similar studies that cannot easily be resolved. On one hand, employers are striving to obtain increased worker performance and gain more productivity while on the other hand they are driving their employers to wok longer, harder and more effectively often in extremely hazardous conditions. Thus, it would appear that efforts to increase productivity can have contradictory results.